Navigator : 2023 ESG Report

Contents

03

CEO's Introduction

Welcome to our ESG report for the 2023 reporting year.

This year, Navigator has once again enhanced the scope and depth of our voluntary disclosures and made progress on technology, innovation, decarbonization, diversity, and governance.

In 2023, our Adjusted EBITDA increased by over 35% compared to the previous year,

reflecting our strong operational performance and growth. The U.S. Ethane and Ethylene markets remained robust, and we saw increased demand for transport on handysize gas tanker vessels and higher Time Charter Equivalent (TCE) rates. The shipping industry encountered a range of pressures in 2023 while continuing to respond to the threat of climate change. Our financial performance reflects our resilience to these challenges.

I believe that our ESG strategy offers us new perspectives that help us prepare for the future. Our decarbonization efforts exemplify this approach. Investments in data-driven efficiency are reducing costs today and positioning our fleet competitively as regulations further incentivize cleaner and more efficient operations. As a company listed on the New York Stock Exchange with a market capitalization exceeding $1.1 billion at the time of writing, we are responsible for managing risk comprehensively. Our strategic investments in safety, decarbonization

and associated digital technologies reflect our commitment to this responsibility, in conjunction with our revenue and business growth.

While financial performance is paramount to our success as a commercial organization, we do recognize our place within the global community. This report places a spotlight on these broader commitments to ESG initiatives. We remain dedicated to building positive relationships with our customers, trade partners and employees, and strengthening our efforts to improve environmental stewardship. We are also devoted to continuous improvement and responding constructively to change.

Our business strategy positions us as a forward-thinking, technologically advanced, and responsible fleet operator. We are committed to sustainable growth, leveraging our strengths to address global challenges. Our strategic investments, including the expansion of our Ethylene Marine Export Terminal and initiatives like our Bluestreak CO2 Joint Venture and investment in Azane Fuel Solutions A/S, underscore this commitment. These are investments in the future of energy and gas transport and supply chains, which emphasize the need for innovation and inherent sustainability.

04

CEO's Introduction

Navigator Gas has a role to play in building a more sustainable energy and gas supply chain. This decade, we will continue to build a safe, efficient transport network for alternative fuels and chemical feedstocks. We have committed to investing around $5 million USD in efficiency improvements, which are expected to reduce GHG emissions across our fleet. These measures embed lower operating costs and allow us to potentially take advantage of a range of other benefits, including reduced exposure to EU ETS costs, access to favorable lending rates through our Poseidon Principles lenders, and the potential for pooling opportunities under FuelEU. Our financial stability and forward-thinking approach equips us to align with a net-zero future, and remain at the forefront of change in the handysize gas segment.

We can also report progress on our continued efforts to build a highly skilled and inclusive workforce. Along with the expansion of our fleet and terminal operations, we welcomed new colleagues into the global Navigator Gas team in 2023. I am pleased to highlight our progress on diversity, equity, and inclusion, with an increase in the number of female staff among our shore-based and seafaring colleagues. We have also made progress in balancing gender representation on our Board of Directors, which attained 43% female representation in 2023 and is all the stronger for it.

This report describes our dedication to building a business that is profitable, resilient, and prepared for the future. We will never be complacent about the challenges ahead, but we are confident in our preparedness and progress, placing us in an advantageous position to succeed. I hope you enjoy reading this report.

Mads Peter Zacho

Chief Executive Officer

05

About

Navigator

Gas

We are a vital link in theglobal liquefied gas supply chain.Our sophisticated fleet and Houston marine export terminal offer a safe, efficient, and reliable floating pipeline, connecting producers with consumers.

Navigator Gas specializes in the seaborne transportation and distribution of complex liquefied gasses, primarily liquefied petroleum gas (LPG), petrochemicals, and ammonia.

With 56 semi- or fully refrigerated gas carriers, we own and operate the largest fleet of handysize vessels globally. We also own a 50% share in the world's largest ethylene marine export terminal in Houston, USA.

Headquartered in London, we have offices in Copenhagen, Gdynia, Houston, and Manila. Our headcount rose as we grew our seagoing fleet and shore-based operations. We employed 2,436 people across our business units, comprising 172 onshore colleagues and 2,264 seagoing personnel. Our fleet also grew by 8% to 1,164,741 deadweight tonnes, and sailed a total distance of 3,396,203 nautical miles, carrying 6,629,689 metric tons of cargo. Our vessels made 1,633 port calls, an increase of approximately 10.5% over 2022.1

07

Our

Business

Model

Our Fleet

Ethylene

Marine Export

Terminal

Our business model comprises two centers of operation: a sophisticated fleet of liquefied gas-carrying ships and a strategically located ethylene marine export terminal. Navigator is also an investor in Azane Fuel Solutions AS and is part of a joint venture with Bumi Armada called Bluestreak CO2, which is developing CO2 maritime transportation and injection projects in the United Kingdom.

Our core business deploys assets and capabilities to serve energy companies, industrial consumers, and commodity traders with an efficient and reliable "floating pipeline" for the transport and distribution of complex liquefied gasses worldwide.

Our Fleet

We own and operate a modern fleet of liquefied gas carriers. This comprises 42 'handysize' liquefied gas carriers with cargo capacities between 15,000 and 24,999 cubic meters (CBM), five 37,300 - 38,000 CBM 'midsize' carriers, five 12,000 CBM ethylene carriers, and four 3,770 - 9,000 CBM semi- refrigerated carriers. Of our 56 gas-carrying

vessels, 25 are ethylene or ethane capable. We are the largest handysize LPG vessel operator in the world.

Ethylene Marine Export Terminal

Our Ethylene Export Terminal, located at Morgan's Point on the Houston Ship Canal, comprises an ethylene refrigeration unit and a 30,000 tonne capacity ethylene cryogenic storage tank. The facility exports about one million tonnes of ethylene per year, loading suitably equipped carriers at a rate of

1,000 tonnes per hour. A $130 million USD expansion project, expected for completion in the fourth quarter of 2024, is expected to increase throughput capacity to at least 1.55 million tonnes per year.

Products with Purpose

Complex liquefied gasses play a crucial role in sustainability and global trade, serving as versatile energy sources and raw materials for various industries.

09

Our

Business

Model

Our

Value

Chain

Our Value Chain

OIL HYDROCARBONS

OIL PRODUCTION REFINERY

GAS HYDROCARBONS

FUTURE VALUE CHAIN

LPG,

PROPANE,

BUTANE

ETHANE

FEEDSTOCK

BUTADIENE PROPYLENE

ETHYLENE

DERIVATIVE / PROCESSED

GREY

AMMONIA

BLUE

AMMONIA

GREEN

AMMONIA

CO2

Navigator Gas' expanded role

Traditional shipping's role

ENTERPRISE NAVIGATOR

EXPORT TERMINAL

LOW CARBON

MARINE FUEL

OFFSHORE CO2 SINK

ENERGY

PETROCHEMICAL

PRODUCTION

BUTADIENE

PROPYLENE

ETHYLENE

DERIVATIVE /

PROCESSED

CONSUMER GOODS

FERTILISER

GREEN ENERGY

ONSHORE CO2 SINK

HOUSEHOLD ENERGY

INSULATION

SOLAR PANELS

MEDICAL EQUIPMENT

RUBBER DUCKS

FOOD PRODUCTION

INDUSTRIAL

ENERGY APPLICATIONS

UPSTREAMMIDSTREAM

DOWNSTREAM

10

Our ESG

Strategy

Materiality

Assessment

2 KPMG (October 2022), Big shifts, small steps: Survey of sustainability reporting 2022. Retrieved from assets.kpmg.com

Navigator Gas has maintained a formal ESG strategy since 2019. Since our first Corporate Social Responsibility (CSR) report, our approach has matured rapidly. We have proactively engaged with a range of stakeholders and sought the expertise of organizations such as the Boston Consulting Group and the Mærsk McKinney-Møller Center for Zero Carbon Shipping to help guide our vision towards more sustainable operations.

Materiality Assessment

Our ESG strategy is underpinned by a detailed impact materiality assessment. Last completed in 2022 in collaboration with external advisors, our current assessment identifies and prioritizes ESG-related risks that are most applicable to our value chain and financial performance. Our next assessment, based on a "double-materiality" approach, is scheduled for 2025.

By combining quantitative and qualitative techniques, such as surveys and interview studies, Navigator gathered and ranked material risks in accordance with the Global Reporting Initiative 3: Material Topics (2021) guidelines. These guidelines are the most commonly used globally and represent a robust framework for assessing impact materiality.

Our assessment identified nine stakeholder groups for consultation on materiality, and we engaged employees, clients, shareholders, regulators, lenders, capital markets, nongovernmental organizations (NGOs), and industry groups to understand their views

of the material impact risks faced by our Company.

The material ESG-related risks we face were assessed against a matrix that considers (1) business criticality and (2) importance to our stakeholders. Twenty material ESG risks were identified, ranging from low criticality-low importance to high criticality-high importance factors.